Central regions | Finance, business | Technology & innovation

Start-up supporters may be granted tax benefits

21 Nov '17

Entrepreneurs who invest in start-ups may have their income tax rates reduced under a new national “digital economy” program. It’s an initiative by the Russian Cabinet to attract funds into the domestic venture market and incentivize tech oriented business, Firrma.ru reported, citing a source with knowledge of the developments.

The Russian Ministry of Economic Development and the Skolkovo Foundation are reported to be the key masterminds behind the “digital economy” program and fundamental provisions for its scheduling and regulation. The tax benefits for investors has already been reviewed and approved by a special interdepartmental working group that brought together representatives of Russia’s Ministry of Finance, Ministry of Economic Development and Ministry of Telecommunications. By the end of 2018 a number of relevant amendments to the Russian Tax Code must be developed.

The Russian Cabinet has approved the “digital economy” program to be effective through 2024. The initiative is expected to boost the systemic development and introduction of technology in most areas, including the economy, government, social policy, and municipal activity.